·Charlie Munger’s Daily Journal Portfolio
continues to have just four positions.

·The portfolio has been largely untouched since
their first 13F filing for Q4 2013.

·The overall portfolio value decreased marginally
during the quarter.

Charlie Munger’s Daily Journal portfolio value decreased
marginally this quarter from $161M to $160M. Since their first 13F filing in Q4
2013, there has only been one change to the holdings: POSCO was reduced
significantly in Q4 2014. After accounting for this sale, the portfolio value
has remained remarkably steady over the last four years. To know more about
Charlie Munger, check out the book Poor Charlie's Almanack: The Wit and
Wisdom of Charles T. Munger.

Regarding the origins of this portfolio in 2009, Charlie
Munger said the following during Daily Journal’s (DJCO) AGM Q&A: “In
addition to Daily Journal's businesses, we have a great bundle of securities
and want to dispel again that this is not some minor version of Berkshire. We
have a bundle, because we bought them at a time when we preferred to own them
to holding cash and had a lot of extra liquidity on hand that came to us by
accident. The chances of more gains like what we have done in the last four or
five years is zero. Oh, well we will have a big gain next quarter, because of a
deferred tax reduction from the Trump tax code change, so we will look like a
genius for one more quarter, I suppose.” The cost-basis of the positions
acquired at the time was $63.4M and it has quadrupled since.

Below is a look at the holdings:

Wells Fargo (WFC):
WFC stake forms ~53% of the entire portfolio. The stock was at $45.40 EOY 2013
during their first 13F filing and is now at $52.23.

Bank of America
(BAC): BAC is another large stake at ~43% of the portfolio. The stock was
at $15.57 during their first 13F filing for EOY 2013 and is now at $26.61.

US Bancorp (USB):
USB is a 4.64% of the portfolio position. The stock is at $51.56, around 25%
higher compared to the EOY 2013 pricing of ~$40

POSCO (PKX): The
minutely small 0.40% portfolio stake was sold down by ~85% in Q4 2014 at prices
between $64 and $73. The stock is now at $57.37.

The spreadsheet below show Charlie Munger's Daily Journal US
stock holdings as of Q3 2018. Please visit our previous updates to get an
idea on how the portfolio has progressed: